Breaking it down: A look at the budget agreement

Wednesday

Dec 18, 2013 at 12:40 PM

The budget agreement passed by the House and being debated in the Senate sets spending limits for two years and averts a possible government shutdown in January.

The budget agreement passed by the House and being debated in the Senate sets spending limits for two years and averts a possible government shutdown in January. Endorsed by President Barack Obama, it increases government deficits in 2014 and 2015 but reduces them over 10 years by a total of $23 billion.

Key details:

—Establishes overall non-war-related discretionary spending at $1.012 trillion for the current fiscal year and $1.014 trillion for fiscal 2015. Discretionary spending is the money approved by Congress each year for agency operations. The House budget level had been $967 billion and the Senate $1.058 trillion for the year that runs through next Sept. 30. Fiscal 2013 spending was $986 billion.

—Eases across-the-board "sequester" spending cuts by $63 billion over two years, split between defense and domestic programs. In the current fiscal year, defense would be set at a base budget of $520.5 billion and domestic programs at $491.8 billion.

—Raises airline security fees from $5 to $11.20 for a typical round-trip ticket starting July 1, 2014. That would raise $13 billion over 10 years. Current fees are $2.50 per leg with a maximum of $10 for a round trip with connecting flights or $5 for a round trip with non-stops.

—Reduces retirement benefits for working-age military retirees, including those who retire early because of disability. Starting Dec. 1, 2015, the cost-of-living adjustment for pensions received by people under 62 would be modified to equal inflation minus 1 percent. Upon reaching 62, retirees would receive a "catch-up" increase that would restore their pensions to levels as if the cost-of-living adjustment had been the full consumer price index in all previous years. The change would save $6 billion.